Shares of this microcap company jumped 4 percent in Monday’s trading session after receiving an order from Larsen & Toubro Ltd. The shares have delivered a multibagger return of 170 percent to its shareholders in just three months.
With a market capitalization of Rs. 525 crores, the shares of RBM Infracon Ltd started Monday’s trading session on a higher note at Rs. 622, gaining 4 percent compared to its previous close of Rs. 594 and presently, they are trading at the initial price.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received a service order from Larsen & Toubro Limited, Construction for the removal of flooring, demolition/dismantling, and demolition of existing order structures worth approx Rs. 5.89 crores.
Earlier, last week, the company received a service order from Nayara Energy worth approx Rs. 22.17 crores to supply ARC for a crude tank (2 Nos.) and M&I jobs at the COT area for 1.75 years.
Coming onto the company’s financial statements, the revenue zoomed by 66 percent from Rs. 20.16 crores during the September quarter to Rs. 33.37 crores in the December quarter. In addition, the net profits magnified by 261 percent from Rs. 1.35 crores to Rs. 4.87 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 11 percent from Rs. 30.17 crores during Q3FY23 to Rs. 33.37 crores in Q3FY24. In addition, the net profits increased from Rs. 37 lakhs to Rs. 4.87 crores during the same period
Looking at the company’s financial ratios, the Return on Equity (RoE) stood at 12.82 percent for the fiscal year 2022-2023, while the Return on Capital Employed (RoCE) was recorded at 20.21 percent during the same period. Additionally, the net profit margin for FY22-23 was reported at 2.65 percent.
As per the latest shareholding pattern, the Promoters maintain a majority stake, owning 62.50 percent of the company’s shares. The remaining 37.49 percent of shares are held by Retail Investors or the Public.
Headquartered in Jamnagar, RBM Infracon was incorporated in 2013. The company is primarily engaged in the engineering, execution, testing, commissioning, operating and maintenance of mechanical and rotary equipment for oil and gas refineries, cement, fertilizers, Petrochemicals, Coal/Gas based power plants, etc.
Written By Vaibhav Patil
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